Got into a car accident(not my fault). Am I required to fix my car or can i keep the insurance money?

Answer 1

It depends on the state you live in. The same thing happened to me and my husband and in Georgia you are required to have it fixed. However, you can shop around a see if you can find a better deal. If you can then the rest of the money is yours.

Answer 2

First off, the answer by "Jenny" above about telling the bank about it, is WRONG! Never tell your lender about any accident, unless the car is totaled of course...depending on how your loan's written up the bank COULD immediately call in the loan, making the whole amount due and payable. The reason? Due to the accident your car isn't in the same condition as when the loan was granted, and depending on the wording in your loan agreement, that could put you in breach.

The correct answer to your question is, in some states you are required to do the repairs, and some you aren't; my advice is to call an insurance company (not your own, obviously) and ask.
Where I live (IL), the insurance company cuts the check based on the lowest estimate to get the work done among the estimates that have been acquired. This could vary depending on the company's policy and whether your agent is a jerk about claims or not. The check's made to that place, unless you choose to go elsewhere, then the check's made to you, but only for that amount. So, you can either get the work done, or not. And believe me...the place the insurance company picks will only do barely enough work to get the job done, nothing more.

Hope this helped.

Answer 3

Depends. First, if there is a loan on the car it is being used as collateral and whoever loaned you the money, for example, a bank, may require that you fix the car because that is your collateral and if you don't make your payments they would take possession of the car. Obviously, they do not want a damaged car. So, if you have a loan out you will have to ask who you have the loan from if it is okay to take the money. It will usually state in the loan agreement that you must keep the vehicle in its' current condition throughout the term of the loan.

Now, if the car is paid for the decision is yours. However, you will be paid differently by the insurance company. If you get the car fixed, they will pay to get it fixed, lets say the estimate is $1,000. They will pay that. However, if you decide to keep the money, you will not get $1,000. That is because part of the $1,000 is profit for the auto company fixing your car, and you can not profit from the accident. So, you may only get say, $600.00 if you keep the money. Also, if you keep the money and don't get the car fixed, that portion of the car is no longer insured for damage. In other words, if the front right fender is smashed and you keep the cash and someone runs into your front right fender again in a year, the insurance is NOT going to pay you again for that fender. You're on your own. That is reasonable because otherwise you could just run into something every other day with that fender and keep collecting on it.

Answer 4

Depends on the terms of your policy. Most large firms look at this situation as it is your vehicle and you can repair or not; the policy only states it will indemnify you for your loss. If you pocket the cash be prepared to have your collision and comp dropped by the company.
PS: your ins has an obligation to the lein holder as well so there may be a cash ceiling they will pay to you before the lein holder will also have to be listed on the check. Also, if the other company is paying this claim they have NO obligation to pay any other party than yourself (if you indeed are the only owner fo the vehicle). Do not accept a check with a repair firm on it.

Answer 5

As a former Ins. agent in Oklahoma I can tell you that here you are not required to use the money for repairs. If the other company gives you a bad time , mention that you may not want to settle until you have seen a doctor for a complete check up to make sure you have no injuries. If they still won't co-operate , start complaining and tell them you will have to consult an attorney. The attorney will not charge you for a "personal injury" consutation. This usually persuades them to be reasonable.

Answer 6

No, the money is yours,just because someone else hit you. You can do with the money what you will,but if the car has no rust on it,you might want to consider getting it fixed to keep the spot from rusting,but it's your money once you get it,to do whatever you want with it.